IHI seals U.S. shale gasoline deal


Japanese heavy machinery maker IHI Corp. said Thursday it has received an order for the basic engineering design of a gas-to-gasoline plant in Alexandria, Louisiana.

Under the contract with Sundrop Fuels Inc., a fuel company based in Longmont, Colorado, IHI will design the plant to produce gasoline from shale gas, a type of natural gas.

The contract is valued at some ¥400 million.

After completing the design by October, IHI aims to conclude a contract with the partner to cover procurement and plant construction.

The new facility will annually produce about 60 million gallons of finished gasoline from natural gas.

Sundrop Fuels will also demonstrate its gasification technology for making renewable gasoline from woody biomass. In the future, it hopes to build mega-plants, each producing more than 200 million gallons a year.